In This Article:
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Net Income: EUR53 million in Q4; EUR261 million for the full year, up almost 9% from 2023.
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Total Revenue: Down 0.6% from 2023.
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Insurance Revenue: Decreased by 2.2%.
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Client Retention Rate: 92.3%.
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Pricing: Down 1.4%.
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Information Business Growth: Over 16% increase.
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Factoring: Stabilized with a slight increase of 0.3%.
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Loss Ratio: Improved by 2.5 points to 35.2%.
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Combined Ratio: Increased by 1.2 points to 68.7% in Q4.
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Cost Ratio: Increased by 3.6%.
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Solvency Ratio: 196%.
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Dividend Per Share: Proposed at EUR1.4, up EUR0.10 from last year.
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Return on Average Tangible Equity: Almost 14%, up 0.5 points from 2023.
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New Business Production: Increased compared to 2022 and 2023.
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Net Combined Ratio: 65.5%, up 1.2 points from last year.
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Investment Portfolio: Valued at almost EUR3.3 billion, with a yield of 4.1%.
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Recurring Investment Income: Increased from EUR65 million to EUR97 million.
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Book Value Per Share: EUR14.7; Tangible Book Value Per Share: EUR13.1.
Release Date: February 20, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Coface SA (CFACY) reported a net income of EUR 261 million for 2024, marking an increase of almost 9% from the previous year.
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The company maintained a high client retention rate of 92.3%, indicating strong customer loyalty.
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Coface SA (CFACY) achieved a return on average tangible equity of nearly 14%, which is the best performance under IFRS 17 rules.
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The solvency ratio remains strong at 196%, well above the target range, ensuring financial stability.
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The acquisition of Cedar Rose in the Middle East is expected to enhance Coface SA (CFACY)'s information services in a challenging region for data quality.
Negative Points
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Total revenues slightly declined by 0.6% compared to 2023, with insurance revenue down by 2.2%.
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The combined ratio increased by 1.2 points, indicating higher costs relative to premiums earned.
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The cost ratio rose by 3.6%, driven by flat revenues and continued investments in sales, data, and technology.
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The environment remains challenging with rising insolvencies, particularly in major economies, which are 20% to 30% higher than in 2019.
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The company faces uncertainties related to tariffs and potential trade wars, which could impact future operations.
Q & A Highlights
Q: Can you provide insights into the buffers built up in your reserves, given the shift from 75% to 85% in the initial aspects? A: Xavier Durand, CEO, explained that the reserve levels have been consistent, with a slight increase due to the normalizing environment post-COVID. The risk level has been rising steadily over the last three years, and the company maintains a prudent approach to reserving.